Foreign Currency Hedging

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Hedging

5. Foreign Currency Hedging

We designate the foreign currency exchange contracts used to hedge our royalty revenues based on underlying Euro-denominated sales as cash flow hedges. Euro forward contracts are presented on a net basis on our Condensed Consolidated Balance Sheets as we have entered into a netting arrangement with the counterparty. As of December 31, 2015, all outstanding Euro forward contracts were classified as cash flow hedges. There were no Euro forward contracts outstanding as of June 30, 2016.

The notional amounts, Euro exchange rates and fair values of our Euro forward contracts designated as cash flow hedges were as follows:

Euro Forward Contracts			December 31, 2015
			(In thousands)
Currency	Settlement Price ($ per Euro)	Type	Notional Amount		Fair Value
Euro	1.260	Sell Euro	$	16,500	$	2,802

 The location and fair values of our Euro forward contracts in our Condensed Consolidated Balance Sheets were as follows:

Cash Flow Hedge	Location	December 31, 2015
(In thousands)
Euro forward contracts	Prepaid and other current assets	$	2,802

The effect of our derivative instruments in our Condensed Consolidated Statements of Income and our Condensed Consolidated Statements of Comprehensive Income were as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2016		2015			2016		2015
(In thousands)
Net gain (loss) recognized in OCI, net of tax (1)	$	—	$	(1,305	)	$	—	$	4,363
Gain (loss) reclassified from accumulated OCI into "Queen et al. royalty revenue," net of tax (2)	$	—	$	1,739		$	1,821	$	2,408

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(1) Net change in the fair value of cash flow hedges, net of tax.

(2) Effective portion classified as royalty revenue.